India's silver imports likely to touch record highs on the back of investment driven demand

18 Aug 2022 , 08:44 AM

Following a price decline to 2-year lows that encouraged investors to gamble that the metal was ready for a rebound and may outperform gold in the future years, India’s silver imports are expected to triple from a year ago to record highs in 2022.

A rise in demand in India, the largest consumer of silver worldwide, might bolster market prices. According to preliminary data from the Ministry of Commerce and Industry, silver imports increased dramatically in the first seven months of 2022, rising to 5,100 tonnes from just 110 tonnes in the corresponding period the previous year.

India imported 2,218 tonnes and 2,773 tonnes of silver in 2020 and 2021, compared to 5,969 tonnes in 2019. After reaching a record high of Rs77,949 a kilogram in 2020, local silver futures were trading around Rs57,900 per kilogram on Wednesday afternoon.